Finance Calculator · UK
What should I charge as a freelancer? Find your minimum viable day rate.
Most freelancers undercharge because they forget to account for all the costs of self-employment. Unlike an employee, you receive no paid holidays, sick pay, pension contributions, employer NI or equipment — all of these must come out of your rate. The formula is: Annual Revenue Needed ÷ Billable Days = Minimum Day Rate.
A typical UK freelancer has around 200 billable days per year once you subtract weekends, bank holidays, holidays, sick days and admin time. If you need £50,000 take-home as a sole trader, you'll need roughly £70,000–£75,000 in revenue after tax — requiring a day rate of around £350–£375. Add a profit margin and you should be charging closer to £420–£450/day minimum.
To see how much of your revenue you keep after tax, use our Take-Home Pay Calculator. To plan how to put your earnings to work, see our Investment Return Calculator.